By Angela Palumbo

HP Inc.'s latest quarterly earnings results are nearly here, and Wall Street will not only be looking to see how rising memory costs continue to impact the computer products maker, but how higher PC prices have impacted demand.

HP is scheduled to report fiscal second-quarter financials after the stock market closes on Wednesday. Analysts surveyed by FactSet expect the computer maker to report 71 cents in adjusted earnings a share on revenue of $14 billion for the quarter ended in April.

The soaring cost of memory continues to be a problem for the entire tech hardware space. Memory is a component used to help power artificial intelligence. As more companies rush to build out the infrastructure needed to power AI, memory demand is far outpacing supply. As a result, costs have soared, impacting the margins of equipment manufacturers everywhere.

When reporting first-quarter earnings in February, HP management said that they expected full-year financial results to come in "closer to the low end of our range" due to the increasing memory costs.

HP and other tech hardware companies have been trying to offset these rising costs by raising prices for consumers. Evercore ISI analyst Amit Daryanani wrote on May 22 that so far, PC demand has remained intact despite price hikes.

"While memory-related margin pressure remains top of mind, we think the underappreciated story has been the resilience of demand to start the year, particularly as [original equipment manufacturers] have already pushed through two or more broad-based price increases," Daryanani wrote. He rates HP as In Line, with a $20 price target.

Wall Street seemed optimistic that HP would report strong PC demand after peer Lenovo Group reported a knockout fiscal fourth quarter on Friday. Shares of HP and fellow computer products maker Dell Technologies jumped 15% and 17%, respectively, following Lenovo's results.

However, analysts are mindful that these price increases could soon have an impact on customer purchases. BofA Securities analyst Wamsi Mohan rates HP as Underperform with a $16 price target. He wrote last week that recent industry data suggests that PC demand has remained strong this year, adding that the bigger debate is whether double-digit price increases hurt demand in the second half of the year.

Outside of cost and price impacts on HP products, investors are still waiting for HP to provide an update on the search for a new CEO. HP announced in early February that Enrique Lores had stepped down from his position as CEO. Bruce Broussard, a member of the company's board of directors since 2021, has been acting as interim CEO in his stead.

Write to Angela Palumbo at angela.palumbo@dowjones.com

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May 27, 2026 04:00 ET (08:00 GMT)

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